ONGC Offer for sale: The Union government has decided to sell its 1.5 percent stake in Oil and Natural Gas Corporation through an offer for sale (OFS). The offer for sale (OFS) from Oil and Natural Gas Corporation (ONGC) received a strong response from non-retail investors. Today, March 31, 2022, the ONGC is open for sale of shares to retail investors. Nearly 19 million shares, worth Rs 300 crore, reserved for retail investors will be auctioned on Thursday. The unsubscribed shares in the retail class, if any, will be allocated to non-retail investors.
Here’s Everything You Need To Know About ONGC’s Listing For Sale Before Investing
ONGC OFS: price range, other important details
The Union government’s offer to sell 94.3 million shares or a 0.75 percent stake in the public sector oil and gas company was set to open to non-retail investors on March 30. The offer to sell another 94.3 million, or 0.75 percent, was set to open to retail investors on March 31. The floor price for the sale has been set at Rs 159, with about 7 percent off the share’s closing price of Rs 171 on March 29.
ONGC OFS: who can invest, reserved portion?
With the sale of the ONGC shares, a minimum of 25 percent of the shares is reserved for investment funds and insurance companies, while 10 percent is intended for private investors. Retail investors are defined as individual investors who bid on no more than 2 lakh shares. ONGC employees can apply for shares worth up to Rs 5 lakh each, the filing said, adding that 0.075 percent of the shares sold in the OFS would be offered to eligible employees at the closing price. The government owns a 60.41 percent stake in ONGC, which produces half of India’s oil and gas.
ONGC Stocks: Should You Buy?
Sonam Srivastava, founder of Wright Research, said: “The shares will be available for Rs 159 in the offering for sale, which is a 7 percent discount from a previous closing price of Rs 171. ONGC is for the short term and with The small discount offered by this OFS could be an attractive buy, but since this is a PSU stock and there is a decline in crude oil prices following the Russia-Ukraine crisis, caution should be exercised.”
Avishek Datta, research analyst at Prabhudas Lilladher, suggests that “One should buy ONGC from CMP as crude oil and gas prices are likely to remain high.”
India’s Comptroller and Auditor General had said last week that India has lost 3.8 million metric tons of crude oil worth Rs 11,276 crore in four years due to less-than-planned water injection by ONGC into its western offshore fields.
The center has been able to collect about Rs 45,485.87 crore as of January 2022 through the proceeds of divestments and dividends combined. the 2022 budget.
The Union’s finance minister Nirmala Sitharaman had set a target in her previous 2020-21 budget to raise Rs 2.1 lakh crore from privatization and sale of minority stakes in state-owned companies. The divestment, before fiscal year-end on March 31, comes after the government launched an initial public offer for the nation’s largest insurer, Life Insurance Corp. has postponed it to next year due to market volatility.
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